SF 1586

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to the environment; enacting the Global Warming Preparedness
Act; requiring Pollution Control Agency to adopt rules to require reporting
and verification of statewide greenhouse gas emissions and monitor and
enforce compliance with this program; providing for carbon dioxide pipeline
rights-of-way; providing for phase-out of coal-fired power plants.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin TITLE.
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new text begin This act may be cited as the "Global Warming Preparedness Act of 2007."
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Sec. 2. new text begin FINDINGS.
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new text begin The legislature finds that:
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new text begin (1) the state has a vital interest in preparing Minnesota's economy to respond
cost-effectively to limits or taxes on greenhouse gas emissions that may be imposed by the
federal government in order to ensure that federal limits do not materially disrupt the state
economy, result in state dependence on foreign sources of natural gas, or cause relocation
of Minnesota industry to jurisdictions that do not similarly limit emissions, and in funding
critical research and development of technologies that will allow the state, the nation, and
other countries to reduce emissions of carbon dioxide from fossil fuels;
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new text begin (2) the state has a long tradition of leadership in environmental stewardship and
innovation and the programs established by this act will continue this tradition, while
recognizing that national and international actions are necessary to address the issue
of global warming; and
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new text begin (3) by exercising this leadership role, the state will position its economy, industry,
and educational institutions to foster the goal of increased in-state energy production
and capture benefits and minimize the costs associated with federal or global initiatives
to reduce emissions of greenhouse gases.
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Sec. 3. new text begin GREENHOUSE GAS EMISSION REPORTING.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purpose of this section and section 4, the terms
defined in this subdivision have the meanings given them.
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new text begin (a) "Greenhouse gases" includes all of the following gases: carbon dioxide, methane,
nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexaflouride.
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new text begin (b) "Major emitting sources" includes all electric utilities, as to all electricity
consumed in the state; natural gas utilities, as to the carbon dioxide equivalent of all
natural gas sold; any source for which a permit to emit any air pollutant is required from
the agency; wholesale providers of fuel oil, petroleum, and other transportation fuels
to Minnesota retailers, as to the carbon dioxide equivalent of the fuel sold; and any
other source that manufactures, sells, or emits greenhouse gases with a carbon dioxide
equivalent of 10,000 tons per year or more.
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new text begin (c) "Carbon dioxide equivalent" means, for each covered fuel, the quantity of carbon
dioxide that would be emitted into the atmosphere as a result of complete combustion of a
unit of the covered fuel, as determined by the agency, and for each greenhouse gas other
than carbon dioxide, the quantity of carbon dioxide that would have an effect on global
warming equal to the effect of a unit of the greenhouse gas, as determined by the agency,
taking into consideration global warming potentials.
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new text begin Subd. 2. new text end

new text begin Monitoring. new text end

new text begin The Pollution Control Agency shall monitor sources of
emissions of greenhouse gases that are associated with global warming to develop a full
inventory of sources of greenhouse gases in the state and the most promising sources
of reductions of those emissions or other means, including terrestrial and geologic
sequestration, to offset those emissions.
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new text begin Subd. 3. new text end

new text begin Initial reports by major emitting source. new text end

new text begin All major emitting sources shall
file with the agency, no later than March 31, 2008, a good-faith estimate of the greenhouse
gas emissions emitted or contributed by such source during each year beginning in 1990
and ending in 2006, based upon all available information. "Contributed" means, in the
case of wholesale suppliers of fuel, the carbon dioxide equivalent of all fuel sold for
resale in Minnesota.
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new text begin Subd. 4. new text end

new text begin Reporting and verification of emissions. new text end

new text begin On or before January 1,
2008, the agency shall adopt rules to require the reporting and verification of statewide
greenhouse gas emissions by all emitting sources. The rules shall:
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new text begin (1) require the monitoring and annual reporting of greenhouse gas emissions from
all major emitting sources;
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new text begin (2) ensure rigorous and consistent accounting of emissions and provide reporting
tools and formats to ensure collection of necessary data; and
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new text begin (3) require that major emitting sources maintain comprehensive records of all
reported greenhouse gas emissions.
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Sec. 4. new text begin DETERMINATION OF STATEWIDE EMISSIONS, EVALUATION
OF COSTS OF GREENHOUSE GAS EMISSIONS LIMITS, SOURCES OF
REDUCTIONS, AND RESEARCH AND INVESTMENT OPPORTUNITIES.
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new text begin Subdivision 1. new text end

new text begin Report. new text end

new text begin On or before July 1, 2008, the Pollution Control Agency
shall, after conducting a structured, broadly inclusive stakeholder-based review, with
public notice and an opportunity for all interested parties to comment, and with the
assistance of a nationally recognized independent expert entity, provide a report to the
governor and the legislature that:
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new text begin (1) calculates, after taking into account the information provided by all major
emitting sources, total statewide greenhouse gas emissions for each calendar year
beginning in 1990 and ending in 2006;
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new text begin (2) identifies and calculates likely new sources of emissions in the state between
2007 and 2022;
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new text begin (3) evaluates the total potential costs and benefits to Minnesota's economy,
environment, and public health of the various proposals before the federal government
for reducing greenhouse gases, including cap and trade mechanisms, carbon or similar
taxes, and mandatory reduction requirements for industry, transportation, and other
sectors of the economy using the best available economic models, emission estimation
techniques, and other scientific methods, and identifies the means available to the state
and its citizens to meet such requirements;
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new text begin (4) identifies, taking into account statewide transportation and industrial fuel
consumption, electrical generation needs, the provision of reliable and affordable
electrical service, fuel needs for home heating, emissions from ethanol and biofuel
production, and nonenergy sources of greenhouse gases, how Minnesota can achieve the
most technologically feasible and cost-effective greenhouse gas emission reductions
from sources or categories of sources, identifying opportunities for emission reduction
measures from all verifiable sources across all economic sectors and regions, including,
but not limited to, conservation, agricultural, terrestrial and geologic carbon sequestration
projects, best management practices, and state policy initiatives, including standards
relating to plug-in and hybrid cars, and green building standards;
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new text begin (5) calculates the emission reductions that are likely to be achieved by state
renewable energy requirements, and the costs associated with those reductions, the likely
timetable for various levels of renewable energy implementation, and the feasibility
and cost associated with transmission and ancillary services necessary to support new
renewable generation;
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new text begin (6) adopts methodologies for the quantification of greenhouse gas emission
reductions; and
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new text begin (7) recommends for approval by the legislature a panel of appointees to an economic
and technology advancement advisory committee to advise the agency on:
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new text begin (i) activities that will facilitate investment in and implementation of technological
research and development opportunities, including, but not limited to, identifying new
technologies, research, demonstration projects, and funding opportunities; developing
state, national, and international partnerships and technology transfer opportunities; and
identifying and assessing research and advanced technology investment and incentive
opportunities for Minnesota's research and educational institutions that will assist in the
development of clean technologies or the reduction of greenhouse gas emissions; and
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new text begin (ii) state, regional, national, and international economic and technological
developments related to greenhouse gas emission reductions.
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new text begin The agency shall consider all relevant information pertaining to greenhouse gas emissions
reduction programs in other states, localities, and nations, including the northeastern states
of the United States, California, Canada, and the European Union.
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new text begin Subd. 2. new text end

new text begin Agency duties; fund. new text end

new text begin The agency shall:
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new text begin (1) periodically review and update its emission reporting requirements, as necessary;
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new text begin (2) review existing and proposed international, federal, and state greenhouse gas
emission reporting programs and make reasonable efforts to promote consistency among
the programs established in state law and other programs, and to streamline reporting
requirements on greenhouse gas emission sources; and
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new text begin (3) adopt by rule, after public comment, a schedule of fees to be paid by major
emitting sources.
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new text begin The revenues collected under this section shall be deposited into the greenhouse gas
reduction fund and are available, upon appropriation by the legislature, for purposes
of carrying out this act.
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Sec. 5. new text begin CARBON DIOXIDE PIPELINE RIGHTS-OF-WAY.
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new text begin The Public Utilities Commission shall have the responsibility for approving the
Minnesota portion of the routing of all proposed pipelines to transport carbon dioxide
to sequestration sites within or outside the state. To the extent reasonably practicable,
pipelines shall be located on existing rights-of-way and the Minnesota Department of
Transportation and all electric and gas utilities shall make any and all of their rights-of-way
available for the carbon dioxide pipelines with compensation solely to cover actual
out-of-pocket costs incurred.
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Sec. 6. new text begin COAL PLANTS.
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new text begin The owner of each existing coal-fired power plant located in Minnesota or serving
Minnesota customers shall develop a plan for the orderly phase-out and decommissioning
of each such plant and submit the plan for approval by the Public Utilities Commission by
June 30, 2008. This requirement does not apply to any plant as to which the commission
has made a finding that such plant is reasonably likely to be able to capture or reduce at
least 20 percent of its carbon dioxide emissions by 2015 in order to contribute to the
significant statewide greenhouse gas emission reductions that will be required to meet
likely future federal requirements. The plan may include required gradual reductions in
the annual hours of dispatch of coal plants covered by this section. Prior to approval of the
plan and notwithstanding any law to the contrary, no utility shall be granted cost recovery
for any additional investments in existing coal plants.
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